Find out How a Successful NFT Marketplace Works

Today, digitalization is on the rise. Many new concepts are emerging from time to time. One of the new concepts in the digital world is NFT. Do you know what NFTs are and how they work?

NFTs (Non-fungible Tokens) are essentially digital works of art. It can be an image, audio file, video or image. NFT provides ownership of works to users to buy or sell them.

The NFT market has exploded in such huge numbers that, in its current situation, it is valued at around $3.5 billion in total revenue with a growth rate of nearly 22%. At this rate, it is predicted that by 2027, the market will reach a value of around $8 billion.

There are markets dedicated to NFT trading. These markets are based on the blockchain model. The marketplaces are linked to various blockchain platforms that provide them with data storage or transmission services.

What is the NFT Market?

NFT Marketplace is a digital platform where one can trade NFTs. Whether it’s buying or selling, a good marketplace strives to provide everyone with a great and smooth experience.

Whether it’s from a seller’s point of view or from a buyer’s point of view, a good marketplace should be as interactive and smooth as possible with its users. From the look and feel of the NFT marketplace to the UX design of the NFT marketplace, everything has to be relevant and unique.

Another function of the market is NFT minting. Mining an NFT means publishing a work of art to the blockchain. This includes all information about the NFT, including the name of the artist and some necessary files that you must provide related to the art. Mining an NFT provides a new unique token. It defines what you did and what you did, and how you will sell it.

The NFT marketplace charges fees from both buyers and sellers. Fees vary from platform to platform. The trading system mainly works on cryptocurrencies or credit cards. Some NFTs are sold at a fixed price, and some of them are set up for auction where buyers bid on them.

Building an efficient NFT market

There are several aspects that can lead to the success or failure of your market.

Several third-party components and services are used to design the best and most efficient marketplace. Let’s take a look at some of those key components and services.

Building structure

• Client and server side: The marketplace must provide a simple yet equally attractive place for both buyers and sellers.
• Digital Wallet: Your platform should have almost all digital wallet options to make it easier for users to transact on your platform. The process should be minimal and quick.
• Metadata: NFT metadata includes the Artist name, NFT description, creation date, etc. Basically, Metadata includes the details of the NFT.
• Smart Contracts: Smart contracts are used by the market because these contracts can activate or deactivate the NFT. There can be only one owner of an NFT at a time.
• Blockchain: Blockchain is an invulnerable system and is the most secure mode of data storage. In addition, it is easy to transfer information through the blockchain system.

Third-party services

• Programming languages: various programming languages ​​are used to grow the NFT market. For example, Golang and Solidity are programming languages ​​used in back-end and smart contract development, respectively.
• Databases/Cloud Database Systems: Databases and cloud systems are used by the market to access a variety of data storage and volumes. .
• Blockchain system: Blockchain alone is not enough to operate the market. There are many services used for different roles. For example, to access the blockchain or to track transactions, there are different software used to perform each task.
• Price tracking services: Programs like CoinMarketCap provide a service to track the price of a transaction. This service is used by almost every NFT marketplace.

Important features of NFT Marketplace

Product Introduction

A marketplace that showcases NFTs listed on its platform. To promote and showcase the exclusive and exotic artworks available on the platform. Filters are available for buyers to filter the NFT search according to their needs and search. A product page is set up for the NFT that describes all the details of the product. In addition, some categories showcase their product ranges and collections.

Buy and sell NFT

A good marketplace offers the ability to choose whether a person wants to sell a product at a fixed price or through an auction. The market’s trading system must be flexible for both cases. The marketplace charges fees from both buyers and sellers. Fixed market fees and royalty fees are charged from both buyer and seller respectively for each purchase or sale made. User Account Management

Complete user authentication must be done using email, contact number, password, wallet details and social media prior to platform registration. User profile must be original and not tampered with, with all necessary information.

market management

Full content management should be done with all published information. Instant and automated sales reports and receipts will be generated along with market returns. Efficient helpline system and user contact options.

Tips for a successful NFT market

Effective planning

The first step to successful action is always planning. You have to plan on what kind of audience you are targeting and what is the underlying motivation for building the NFT market. Lay a solid foundation for your thinking and make your ideas solid. Identify the risks and benefits you may face in any situation. Having a roadmap towards the goal can be helpful.

Deep diving

Deep diving means thorough research on the project. Ask yourself if you know all the needs and necessity of the project. Contact developers and technicians experienced in the field. Knowing the process is an important requirement that you must meet.

Think before you act

Think about whether you can economically invest in such a large project. Do not invest all your assets in the project. Take small steps and identify risks and opportunities at each step. Gain your confidence, ask for feedback on your ideas and then make a decision.

test drive

By test driving, we mean doing a test outlining some smart touches that might help you. Acknowledge all the possibilities and combinations that can lead to failure in your smart contract.

Some of the main NFT markets

Here are some prominent NFT markets worth your consideration.

uncomfortable

Rirable is one of the newest marketplaces to exist in NFT trading. Rirable was launched in 2020 and it uses the official RARI currency, which was launched about a year later.

Rirable is best suited for those who like to play games or just love to collect NFTs.

Binance NFT

Binance is one of the biggest names in the world in crypto. Binance has launched the new NFT marketplace in 2021. Buyers who can get the best quality and premium artwork can trade smoothly with this trusted platform.

Binance is a trusted and widely used platform. Its market is not much different.

wonderful paradise garden

Despite being a new player, launching in late 2021, Magic Eden has increased its user base significantly. It is not listed among the most used NFT markets. It uses an official digital currency called Solana.

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